bonafide1313 Jan 7, 2009:

IAS 20 @ Jim - Given that in IAS 20 these grants are termed "grants related to income", and "grants related to assets", I would tend to use these terms, the more so as the Italian term "contributi in conto esercizio" in my view is very close to "grants related to income", i.e. it does not go into much detail on what all this really is; do you have any particular reasons for not using the standard terms? Siccome la donna e mobile :) I can always change my tendencies...:)) ... also, thks for the reply on "selective benefits"

James (Jim) Davis Jan 6, 2009:

References In reply to a question sent privately by Katy Zei
"Just wondering re contribution in conto esercizio:"

These "contributi in conto esercizio" are required on Italian income statements by Article 2425 of the Civil Code under item A5.

They are governed by Internationa accounting standard IAS 20 Accounting for Government Grants and Disclosure of Government Assistance
They are defined on this web page:
http://www.commercialistatelematico.com/testo_articolo.html?...
as follows (bits in brackets are mine):
Contributi in conto esercizio
Definizione
I contributi in conto esercizio vengono erogati (paid) allo scopo di integrare i ricavi dell’azienda (laddove si verifichino, ad esempio, situazioni congiunturali (economic situtations) tali da incidere negativamente sull’attività dell’impresa) o di ridurre i costi d’esercizio che le imprese sostengono per esigenze legate all’attività produttiva (ad esempio i costi per l’acquisto di fattori produttivi – a condizione che non costituiscano beni ammortizzabili –, per il personale, ecc…).